During the decades a large network of diverse business activities and expertise has developed around the forest industry in Finland. This concentration of expertise is referred to as the forest cluster.
The forest industry forms the core of the forest cluster in Finland; it manufactures wood products, pulp, paper and paperboard as well as converted products. The cluster also comprises
- forestry entrepreneurs
- logistics companies
- machinery and equipment manufacturers
- energy producers
- chemicals manufacturers
- related research institutions, universities and consultancies
- printing industry
- packaging industry
- the wood-based construction industry
The prosperity of Finland depends on the forest cluster maintaining and improving both its ability to regenerate and its high level of competence. This calls for a shared political will.
The forest industry affects the lives of many localities
The forest cluster is and will continue to be a significant contributor to the prosperity of Finland and Europe. Every tenth Finn earns his or her livelihood from the forest industry or sectors which provide services for it. The cluster provides direct or indirect employment for almost 200,000 Finns, of whom 50,000 work in the pulp, paper and wood products industries, 10,000 in furniture manufacturing, 20,000 in forestry, 5,000 in the packaging industry and 25,000 in the printing industry.
Other associated major employers are engaged in the provision of maintenance services, the manufacturing of machinery and equipment, wood harvesting contractors, energy generation and the chemical industry as well as research institutions in the sector.
50 pulp and paper mills in Finland
The forest industry has a significant impact on the future of over 50 Finnish localities. The forest sector is the primary source of livelihood in several provinces, proving the foundation for their vitality.
2 million people in the industry and related areas
In Europe the paper and pulp industry employs about 275,000 people directly; indirectly, up to 1.9 million additional jobs are created. The wood products industry has an even greater employment-creating effect; the manufacturing of wood products provides a livelihood directly for about 1.6 million and indirectly for some 1.1 million European citizens.
Research and development a driving force
The Finnish forest cluster upholds and hones its competence by investing an annual total of €350-400 million in research and development. The research strategy drafted in cooperation by the entire cluster has the aim of doubling the cluster’s R&D investments by 2030. Products that are not yet manufactured would account for half of the total value of production by that date.
If these objectives are reached, Finland will have a successful, sustainably operating forest cluster also in the future. It will be the most profitable cluster of its kind in the world and manufacture the world’s most desirable products.
The forest industry’s cash flows are significant
The money flows of the Finnish forest industry – excluding the intra-sector transactions – are about €13 billion. Wages and salaries paid by the industry to the personnel total almost €2 billion annually. Forest owners in Finland receive about € 1.5 billion as stumpage fees and forest owners abroad are paid about € 300 billion. Other significant items include products and services bought from the energy sector (€1.4 billion), the chemical industry (€1.3 billion) and transportattion sector (€1.8 billion). In additon, a remarkable amount is paid to the public sector in the form of various taxes and fees.